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Old 12-23-2020, 10:19 AM   #41
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Originally Posted by teetee View Post
The assumption would have been true if I started driving early in my life.
If your present old car is a daily driver with average usage (15k miles/yr) then that is some impressive maintenance work you have done for the car over the years..
Nah, I drive nowhere near average use. I live in a place where I can walk to meet almost all of my needs. Only ~188k on the clock.
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Old 12-23-2020, 11:07 AM   #42
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Originally Posted by Andre1969 View Post
Depending on what interest rates are running, I might just finance it.
With rates as they are, this is probably what I would do *if* buying a new car. We recently purchased a new 4Runner and while we could have paid cash, the interest rate was low enough (less than 2%) that it made sense to finance. We also bought a used 2012 Accord as "our spare/beater" but paid cash for that; obviously it wasn't an expensive purchase and there is NO WAY I would finance an 8 year old car.

My last j*b involved the review of financials for folks that often had NWs in excess of $10M and almost ALL of then had cars that were financed, which was really surprising to me.
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Old 12-24-2020, 05:26 PM   #43
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Originally Posted by ExFlyBoy5 View Post
With rates as they are, this is probably what I would do *if* buying a new car. We recently purchased a new 4Runner and while we could have paid cash, the interest rate was low enough (less than 2%) that it made sense to finance. We also bought a used 2012 Accord as "our spare/beater" but paid cash for that; obviously it wasn't an expensive purchase and there is NO WAY I would finance an 8 year old car.

My last j*b involved the review of financials for folks that often had NWs in excess of $10M and almost ALL of then had cars that were financed, which was really surprising to me.
What kind of job was that? Sounds moderately interesting.
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Old 12-24-2020, 07:35 PM   #44
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Old 12-25-2020, 05:58 AM   #45
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Just pull out of savings and buy the large item.
approx +6

no buckets
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Old 12-25-2020, 06:41 AM   #46
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so agree! i have more money than i can spend for the rest of my life, if i spend like i always have. every time i get in the car, it is fun. it is the only joy in my life. smiles per mile. my car is not transportation, it's my sanity--literally.
You sound like my SIL's dad, he ordered his Vette last year and it finally came in in Oct. He can barely get into it and has to be pulled out but he said "I wanted one more Vette in my life and by God it is my money". I agree. My DD wants me to stop riding my motorcycle but I told her to just give it up. I stopped riding in my mid 20's to raise her. After she got out on her on we; DW & I got back into riding and as long as I can hold one up I will.My DW was talking about getting a Miata but my 6'6" frame don't fit one of those so we passed on that. If I ever decide to quit riding I'll then search for a convertible car that I can fit into, but hopefully by then I will be too unlimber to even get in and out of one.
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Old 12-25-2020, 06:52 AM   #47
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Just pull out of savings and buy the large item.


+7 or so.

I bought my truck and house remodel out of my savings. No special account or bucket.

Although I tracked and categorized spending for several years before retirement, I still track but no longer categorize. So a car or big expenditure is just part of overall expenses.
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Old 12-25-2020, 07:25 AM   #48
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I've purchased only new vehicles since 1975, often factory ordered to get the options I want.
Retired since 2013, I presently have a 2008 Mustang and a 2016 F-150. I bought the F-150 with mostly cash and about $10k from my HELOC.

I should order a new Mustang convertible soon, bit I want the rumored hybrid AWD version with electric motors on the front wheels. And that isn't actually in production yet.


I accumulate $$ in my taxable account and my Roth IRA via conversions, stock index funds in both.
No savings account.
So when the time comes, I'll move about $45,000 from those accounts to make the purchase.
I'll have to keep an eye on LTCGs from the taxable account withdrawal to avoid getting bumped into the next higher IRMAA tier...
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Old 12-25-2020, 07:31 AM   #49
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+7 or so.

I bought my truck and house remodel out of my savings. No special account or bucket.

Although I tracked and categorized spending for several years before retirement, I still track but no longer categorize. So a car or big expenditure is just part of overall expenses.
This is sort of what I'm doing now also.
I have excess income nowadays, especially after starting age 70 SS this year.

But this year, since March, is an anomaly since I've spent very little on travel due to the pandemic...
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Old 12-25-2020, 05:51 PM   #50
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I have always purchased cars cash or finance if there are some low lol low interest rates and 2 Cars usuly every 7 years staggered. It alwasy seems like my son needs a car to replace so we just let him have the one due for trade. HOWEVER.. Big mistake 2 years ago for the 1st time ever I gave my son my 8 year old Prius and I leased a ROGUE for my DW.. at 3 years 36K... Thinking technology might entice me to want to switch earlier than in the past. Now 2 and 1/2 years later with COVID that lease car with 9 more months has 12K miles..... I might just have to purchase it at the end of lease since technology has not eclipesed it yet..
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Old 12-25-2020, 08:36 PM   #51
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I will finance it at .9% and finance it for 6 years on their dime.
Where are you getting .9% financing for a car?*

That is VERY interesting!!

*non-military / veteran loan
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Old 12-26-2020, 06:18 AM   #52
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Where are you getting .9% financing for a car?*

That is VERY interesting!!

*non-military / veteran loan

Offers come and go all the time.
For example right now you can get 0% financing for 63 months on a new Subaru Outback. Where we live in NH it is pretty much the perfect car for us and you see may of them all over northern New England. Heck they are practically the state car of Vermont
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Old 12-26-2020, 05:01 PM   #53
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Offers come and go all the time.
For example right now you can get 0% financing for 63 months on a new Subaru Outback. Where we live in NH it is pretty much the perfect car for us and you see may of them all over northern New England. Heck they are practically the state car of Vermont
First things first, need to increase income and reduce expenses to max out 2021 401k and Roth IRA (it'll be the first time!)
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Old 12-26-2020, 06:33 PM   #54
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Before retirement, I set aside enough for an SUV outside of my retirement portfolio. Then shortly after retiring back in 2009, I bought a brand new 2009 Venza, which I still have.

Anyway, it turns out that even without allocating money towards a new car, I can easily afford one. So, I withdrew enough of my cash dividends from my portfolio to pay for my next car and put it in my local bricks'n'mortar savings account.

There it sits. A much bigger problem for me is finding a car that I actually want. None of them appeal to me very much, and I only have about 35,000-36,000 miles on my Venza so there is no urgency in replacing it. But anyway, I'm ready to jump on it if/when I figure out what I want.
Finding a truck that I wanted would be my problem. Right now I drive a 2010 GMC Canyon regular cab truck with a 5-speed manual. I bought it used in 2016 for $8K and plan on keeping it until 2030 or so, as long as it holds up. It's got manual windows and locks and with the manual transmission and no screen in the dash there's very little that could go wrong with it that I couldn't fix myself.

Of course, right now it's impossible to find a new regular-cab manual transmission truck. And I'm sure there will be even less options with a manual transmission 8 years from now. At least in the U.S.
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Old 12-26-2020, 08:24 PM   #55
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Where are you getting .9% financing for a car?*

That is VERY interesting!!

*non-military / veteran loan
My last GM credit card was offering 0% on leftover 2020 models.
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